#MINDANAO
Recent pronouncements from Malaysian Prime Minister Anwar Ibrahim and Singaporean Prime Minister Lawrence Wong highlighted the need for ASEAN to come together to sustain economic cooperation and integration in ASEAN in light of the challenges posed by the recent liberation day tariff announcements by the US government. These statements come at the heels of the recent ASEAN economic ministers meeting.
These and other calls for greater economic cooperation in ASEAN in light of the tariff challenges are timely. They, however, prod us to focus as well on fulfilling the third pillar of ASEAN, which is the ASEAN Economic Community (AEC). This envisions robust trade within ASEAN towards achieving socio economic development of its various peoples through means such as spurring trade facilitation, competition and the reduction of tariff and non-tariff barriers.
The idea of an economic community sprung from discussions concerning the establishment of the ASEAN Free Trade Area or AFTA in 1992. It was developed further through ASEAN vision 2020 in 1997 and the Hanoi Action plan of 1998. The masterplan for creating this community was established in 2007 with more details and concepts toward boosting trade high on the agenda of every ASEAN leaders meeting. Despite being designated as a major pillar of ASEAN, the question remains whether more robust trade has indeed taken root within ASEAN.
within the last 10 years. This bears more critical examination. I hope that the renewed focus prompted by the liberation day tariffs can unlock greater action to boost intra ASEAN trade.
Moreover, deeper and broader economic integration should go beyond removing tariff barriers between nations. It can explore opportunities that can spur new trade.
But the development of industries, the sourcing of materials within ASEAN to feed such industries ought to enable the 10-member bloc to create a strong regional economy from among its 600 million or so citizens. This is double the US population and about half that of India and China. Our ASEAN economies can grow if we are well integrated. As ASEAN, we can be beneficial partners of the other economies.
I believe this is an opportunity to reiterate our collective commitment for ASEAN Economic integration, which will mean unleashing the collective strength of the economies, their businesses and peoples as economic agents.
What else can be done to boost trade within ASEAN?
For one, encouraging more direct trade between proximate areas such as the Sulu Celebes area between Mindanao Sulawesi and Borneo islands, more popularly known as the Brunei Indonesia Malaysia Philippines East ASEAN Growth Area (BIMP- EAGA) subregion. Incentivizing trade between these regions ought to build the regional economies of these areas, enabling them to participate more fully in the economic growth of their respective nations.
Other enablers for trade include harmonizing customs procedures via the ASEAN Single Windows that enabled member states to use a single platform for submitting trade documents. This will accelerate customs procedures and facilitate trade among ASEAN countries. Reviewing each country’s commitment to the use of such single windows can identify gaps and barriers to its use.
Another includes free trade agreements with its various dialogue partners outside ASEAN, such as the European Union, South Korea and Japan, toward creating multilateral free trade agreements. This can create new production synergies and markets for products that can be made in ASEAN.
We look forward to a more integrated, resilient ASEAN economy that can bring much opportunities to its citizens.